There have been excellent blog articles on the yield effects of a later planted crop of cotton and corn and impacts of wet weather on weed control. As well as the possibility of reduced yields we have the re- applying of inputs on fields where nitrogen leached out and where weed control measures have been diluted. From this point, there is uncertainty as producers in Tennessee and surrounding states battle historic floods and the deluge of wet weather. Producers should remain proactive in their approach to the current situation and keep in contact with crop insurance agents, lenders, suppliers, landowners, Extension Agents, grain and cotton buyers, and others as we see what alternatives develop and the most logical approach to proceed.
A reevaluation of the cropping plan is most likely necessary and may also depend somewhat on what and how much of a crop has been forward priced, crop insurance coverage, as well as a field by field or farm by farm decision. Certainly, the productivity of the ground has to be taken into account especially if a later planted crop of corn or cotton is considered and is compared to somewhat normal yield of soybeans and maybe even milo. Flooded ground brings with it, its own set of complexities which will be difficult to explore until water recedes and a time frame can be established. Ground that has been delayed planting due to wet conditions or needs to be replanted will be the consideration of this article.
At this point, the process I would examine would be one starting anew and look only at the input cost that will be applied from here forward. This will be a partial budget approach. For example, P & K if applied last fall or this spring is probably still there, but N and weed control applications are probably gone. So I would look at the cost of N and weed control from a residual application and not necessarily the burn down, unless applied again. Careful thought should also be made on any chemical restrictions from one crop to the next
Estimated Returns Per Acre – Partial Budget
Late Planting Corn and Cotton Scenario
Cotton |
Soybeans | Corn |
Milo |
|
Yield |
705 lbs |
40 bu. | 100 bu. |
90 bu. |
Price (5/4 /11) |
$1.16 lb |
$13.13 | $6.83 |
$6.11 |
Gross Revenue |
$818 |
$525 | $683 |
$550 |
Variable Expenses | ||||
Seed (treated) |
$111 |
$57 | $65 |
$18 |
Nitrogen |
$60 |
$0 | $90 |
$60 |
Herbicides |
$45 |
$39 | $24 |
$27 |
Insect. & Fung. |
$32 |
$17 | $4 |
$9 |
Growth Reg. |
$3 |
$0 | $0 |
$0 |
Scouting |
$9 |
$0 | $0 |
$0 |
Harvest Aid |
$11 |
$0 | $0 |
$0 |
Fuel ($4 diesel) |
$41 |
$19 | $19 |
$19 |
Repairs |
$36 |
$14 | $15 |
$15 |
Labor |
$11 |
$6 | $6 |
$6 |
Operating Int. |
$10 |
$4 | $7 |
$4 |
Total Variable Expenses |
$369 |
$156 | $230 |
$158 |
Returns Above Variable Expenses |
$449 |
$369 | $453 |
$392 |
Land Costs (25%) |
$205 |
$131 | $171 |
$138 |
Returns Above Variable & Land Costs |
$244 |
$238 | $282 |
$254 |
Of course there are many variables that have to be considered, but at current price levels (producers with booked prices will want to factor those in) it looks like even a reduced yield of cotton and corn can compare to a normal or average yield of soybeans. However, whether it is cash rent, own ground or share rent does make a difference. Under the above assumptions, there is really no difference in returns after a 25% land cost comes out. Milo or grain sorghum may also be a suitable alternative to a late season corn crop. Check with your grain elevator on options on filling corn contracts with milo. This is no doubt a difficult start to the crop year; producers should strive to make an informed decision as possible. For assistance in evaluating alternatives, contact your local County Extension office.